Car finance for early retired person.

nifty50plus

Hello all.
I would like to change my car but I need some finance approx. 50% sale price.
My status is retired early age now 55 not in any work now live on a small pension and savings when required.I could buy the new car outright but I want to keep some savings for a rainy day or two.
I don't owe any money and my credit file is very good.
Before I go to the dealership I would like your thoughts on if it is possible to get finance at all,i can afford the repayments,car price £26.000 and I have 50% deposit.
Also if the dealership puts my details to their finance company for approval and I am not approved for finance, is the rejection recorded on my credit file, I will be visiting several different dealerships.


Thank you all for your time.


James.

forgotmyname

Yes rejections are recorded and the more rejections you get the worse your chance of obtaining credit at a decent interest rate.

50% of your income should be seen as a max limit to borrow. So for a £13000 loan your pension needs to be over £26,000 a year.

Does your pension exceed that? Available credit on cards etc may also be counted in the 50%.

Going above 50% may increase the interest rate.

oldhand

Can appreciate you may want a nice car as your retired but is it wise to lay out £26k on an ever depreciating asset with the added problems of costly servicing etc? £5k would buy a very nice car and leave you much more in savings in case those rainy days turn into a deluge..

CLAPTON

nifty50plus wrote: »

Hello all.
I would like to change my car but I need some finance approx. 50% sale price.
My status is retired early age now 55 not in any work now live on a small pension and savings when required.I could buy the new car outright but I want to keep some savings for a rainy day or two.
I don't owe any money and my credit file is very good.
Before I go to the dealership I would like your thoughts on if it is possible to get finance at all,i can afford the repayments,car price £26.000 and I have 50% deposit.
Also if the dealership puts my details to their finance company for approval and I am not approved for finance, is the rejection recorded on my credit file, I will be visiting several different dealerships.


Thank you all for your time.


James.

totally mad to even consider paying high interest when you have the cash earning (say) 2%


totally mad to spend 26,000 when you don't have a t least three times that in savings.

Eonel

forgotmyname wrote: »

Yes rejections are recorded and the more rejections you get the worse your chance of obtaining credit at a decent interest rate.

Just to clarify this wording - a "Rejection" is not recorded. The fact that you applied for credit is recorded, the outcome of the application is not.

Too many applications in a short period is a negative on your credit record - it suggests you are desperate for credit. But the negative effect ceases a few months later when it becomes clear that the multiple credit searches did not materialise into credit accounts.

It is impossible for future potential lenders looking at your credit record to determine if you had multiple searches because you were rejected or if you were just shopping around for the most competitive rate.

nifty50plus

oldhand wrote: »

Can appreciate you may want a nice car as your retired but is it wise to lay out £26k on an ever depreciating asset with the added problems of costly servicing etc? £5k would buy a very nice car and leave you much more in savings in case those rainy days turn into a deluge..

Hi,i am trading in my existing car (its one of those German cars with a sought after name) for £9.000 before the car starts to play up even more (auto gearbox faulty,franchise garage unable to detect fault and still under warranty )


Thank you,all the best.

nifty50plus

Eonel wrote: »

Just to clarify this wording - a "Rejection" is not recorded. The fact that you applied for credit is recorded, the outcome of the application is not.

Too many applications in a short period is a negative on your credit record - it suggests you are desperate for credit. But the negative effect ceases a few months later when it becomes clear that the multiple credit searches did not materialise into credit accounts.

It is impossible for future potential lenders looking at your credit record to determine if you had multiple searches because you were rejected or if you were just shopping around for the most competitive rate.

Thank you for that interesting reply re time scale of searches.


James.

nifty50plus

Just to add,the list cost for this car is £32.000 but the dealers will reduce this to £26.000 but one of the conditions is that they have to finance the majority of the purchase 51%.


One of the finance,rental,plans, contracts I have in front of me states a guaranteed return value of £22.000 for a 35 month contract.


SO that would cost me £4.000 for a brand new,top of the range,sough after vehicle,under 100 of these cars in the Uk.


Ps,I only keep car's whilst they are covered by the manufactures warranty,this has saved many £££'s and headaches.


Going to visit a dealer this morning,hope to have some news soon.


Thank you,all.

nifty50plus

CLAPTON wrote: »

totally mad to even consider paying high interest when you have the cash earning (say) 2%


totally mad to spend 26,000 when you don't have a t least three times that in savings.

Hi,its easy to be over cautious,best to enjoy life while you can :beer:.

macman

Why don't you sort the warranty repair instead and save some money? If the dealer has failed to fix it then contact the manufacturer and ask for a replacement box.
PS: the dealer will be recovering from the expensive finance any upfront discount. If they are discounting that heavily, then so will any dealer or broker.

nifty50plus

macman wrote: »

Why don't you sort the warranty repair instead and save some money? If the dealer has failed to fix it then contact the manufacturer and ask for a replacement box.
PS: the dealer will be recovering from the expensive finance any upfront discount. If they are discounting that heavily, then so will any dealer or broker.

Hi,i would love to get the car repaired but the franchise dealer has failed over and over again.
Auto gear selecting issues,forgets to change gear.
Last time it was in for investigation I was told I have done a lot of start/stop city driving recently and it was my driving style,well that's an absolute lie as the car had just returned from Hanover approx 600 mile run.Have tracker fitted to prove but what the heck,warranty expires in 4 weeks.
So someone else will have the misery of this car (out of warranty)but I will post the car's registration and its history when it comes up for sale via an owners forum,clue 320i.


Cheers.